Management and Organizational Studies 1023A/B Chapter Notes - Chapter 1: Financial Audit, Audit Evidence, Affix

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

General examination of financial data conducted to resolve specific allegations. Does not seek to affix involve efforts to affix blame. Document examination review of outside data such as public records and interviews. Attempts to establish sufficient proof to support fraud allegations fraud examination methodology: fraud allegations must be handled in a uniform, legal fashion, resolved in a timely matter: specific steps employed to narrow the focus the inquiry. Occupational fraud and abuse: the use of one(cid:495)s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization(cid:495)s resources or assets: e. g. asset misappropriation, fraudulent statements, corruption, pilferage and petty theft etc. Edwin h. sutherland: 1939: first defined (cid:494)white-collar crime(cid:495, criminal acts of corporations individuals in corporate capacity, theory of differential association, crime is learned, not genetic. Examination standards: planning and supervision, need to understand the system of internal controls, the auditor is explicitly required to design procedures to detect fraud.